WEEKLY SESSION NOTES
Senate Republican Policy Committee
Sen. Jake Corman, Chairman

Senate Resolution 188 (Stout) urges the Government of Turkey to cease its discrimination of the Ecumenical Patriarchate, to grant the Ecumenical Patriarch appropriate international recognition, ecclesiastical succession and the right to train clergy of all nationalities, and to respect the property rights and human rights of the Ecumenical Patriarchate.  Adopted by Voice Vote. 

Senate Resolution 229 (McIlhinney) designates the month of March 2008 as "Professional Social Work Month" in Pennsylvania.  Adopted by Voice Vote. 

Senate Resolution 235 (Robbins) designates the month of March 2008 as "Youth Arts Month" in Pennsylvania.  Adopted:  47-0. 

Senate Resolution 247 (Erickson) recognizes the month of March 2008 as "National Developmental Disability Awareness Month" in Pennsylvania.  Adopted by Voice Vote. 

Senate Resolution 249 (Stack) declares March 2008 as "Irish American Heritage Month" in Pennsylvania.  Adopted by Voice Vote. 

Senate Resolution 250 (Dinniman) designates March 13, 2008 as "Good Works Day" in Pennsylvania.  Adopted by Voice Vote. 

Senate Resolution 251 (Mellow) designates the month of March 2008 as "Deep Vein Thrombosis Awareness Month" in Pennsylvania.  Adopted by Voice Vote. 

Executive Session 

Nominations to Various Boards and Commissions.  (See Attached)  Confirmed:  47-0. 

Tuesday, March 11, 2008 

Senate Bill 483 (Browne) would amend Act 6 of 1974, known as the Loan Interest and Protection Law (Usury Law), to make a number of changes.  The bill would amend the definition of residential mortgage to increase the principal amount included in the definition from $50,000 or less to $200,000 or less.  An additional change provides for the amount to be adjusted annually for inflation by the Department of Banking through notice published in the Pennsylvania Bulletin.  Further, the maximum lawful rate of interest set in Section 201 of the Act would not apply to an obligation to pay a sum of money in an original bona fide principal amount of more than $50,000; an unsecured, uncollateralized loan in excess of $35,000; or any business loan.  The bill would also provide for a penalty of $10,000 per offense for any person who violates the provisions of the act.  The bill provides the Department of Banking with additional enforcement authority, including the ability to examine records and to issue subpoenas.  If the Department determines that a person has violated the act, it could suspend or revoke any license issued to the person by the Department or prohibit the person from working in any capacity related to activities regulated by the Department.  Passed:  47-0. 

Senate Bill 484 (Browne) would amend the Department of Banking Code to permit the Department of Banking to release information on pending enforcement actions and fines against non-depository licensees (mortgage bankers and brokers).  The bill would also require licensees to use a national electronic licensing system and require all entities licensed by the Department to obtain criminal history checks.  The Department of Banking would be required to make public notice regarding applications; receive comments and objections by third parties; and, conduct departmental hearings.  The Department would have the ability to approve or disapprove an application without holding a hearing.  A hearing would be held if an applicant or other person with standing protests the decision of the Department.  Passed:  47-0. 

Senate Bill 485 (Browne) would amend the Real Estate Appraisers Certification Act to create a new real estate appraiser trainee license and to make changes necessary for compliance with the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 for federally-related transactions.  The bill would require the State Board of Certified Real Estate Appraisers to issue an appraiser trainee license, without examination, to any person who meets the appraiser trainee educational requirements set by board and who does not already hold an appraiser credential.  An appraisal trainee would have to operate under the direct supervision of one Certified Residential Appraiser or a Certified General Appraiser for the purpose of completing the experience requirement for an appraiser credential.  The supervisory appraiser would have to be in good standing, have at least five years of experience as a Certified Residential Appraiser or a Certified General Appraiser, and could not supervise more than three appraiser trainees.  An appraisal trainee would be permitted to assist in the performance of any appraisal that is within the supervisory appraiser's scope of practice.

The bill would add two additional causes for disciplinary and corrective measures by the board to include the suspension or revocation of the right to practice by a federal or state governmental agency or having been found by a civil court of competent jurisdiction to have performed a fraudulent appraisal.  An additional change would increase the penalty that the board could levy for violations from $1,000 to $10,000.  The bill would also modify the membership of the State Board of Certified Real Estate Appraisers to include the Secretary of the Commonwealth or a designee, the Attorney General or a designee, the Secretary of Banking or a designee, and eight additional members who would have to be United States citizens that were residents of the Commonwealth for a two-year period immediately prior to appointment.  Two of these members would be public members and six would be state-certified real estate appraisers.  The bill would not preclude a licensed real estate broker from also holding an appraiser license or certificate and clarify that Certified Residential Appraisers and Certified General Appraisers must conduct appraisals in accordance with the criteria established by the Appraiser Qualifications Board of the Appraisal Foundation.  Passed:  47-0.

Senate Bill 486 (Browne) would amend the Housing Finance Agency Law to improve statewide mortgage oversight by requiring the Pennsylvania Housing Finance Agency (PHFA) to monitor foreclosure activity and trends in the Commonwealth using data gathered from foreclosure notices and mortgage assistance applications.  The legislation would: 

• Require PHFA to maintain an up-to-date list of the approved consumer credit counseling agencies in each county and publish the list on its website;
• Prohibit a mortgagee from taking any legal action, including mortgage foreclosure, prior to a final determination being made by PHFA on the mortgagor's application for emergency mortgage assistance;
• Require the foreclosure notice sent from the mortgagee to a mortgagor to include an itemized breakdown of the total amount past due on the mortgage;
• Provide the mortgagor with thirty days, plus three days for mailing, to have a face-to-face meeting with a consumer credit counselor;
• Require mortgagees and other lenders to provide Act 91 foreclosure notices to PHFA;
• Provide notification to a mortgagee if an administrative appeal has been filed;
• Allow mortgage assistance applications to be submitted to PHFA beyond the thirty day period and permit PHFA to make a determination within sixty days of receiving the mortgagor's application.  Receipt of a late application would not stay a foreclosure proceeding.  However, if an application is approved, a commenced foreclosure proceeding could be stayed unless and until the mortgagor fails to proceed to closing and the agency rescinds its approval;
• Provide that mortgagees seeking mortgage assistance payments must provide, in a timely manner, necessary information to PHFA including itemized statements of money due under the mortgage, fees incurred for attorneys, court costs, and expenses;
• Provide that a mortgagee will receive monthly payments from PHFA and allow PHFA to buy out predatory loans when appropriate; and
• Change the assistance interest rate from nine percent to a mortgage interest rate established under the Usury Law.  Passed:  47-0.

Senate Bill 487 (Browne) would amend the Mortgage Bankers and Brokers and Consumer Equity Protection Act to require licensure of persons who are individual mortgage originators.  Among other modifications, the bill would: 

• Require the licensing of individual mortgage originators rather than just the companies they are employed by and require such mortgage originators to be employed and directly supervised by a licensed mortgage banker, mortgage broker or loan correspondent.
• Require employees of licensees under the Consumer Discount Company Act who act as mortgage originators to be subject to the licensing requirements of this Act and hold their employers to the same requirements as mortgage bankers with regard to the employment and supervision of mortgage originators.
• Eliminate the real estate licensee, builder, and insurance company licensure exemptions.
• Increase the fees for licensure and require an applicant for licensure to successfully complete a minimum of twelve hours of instruction and a testing program regarding the first mortgage loan business, the Loan Interest and Protection Law, and relevant federal law such as the Real Estate Settlement Procedures Act, the Truth in Lending Act, and the Equal Credit Opportunity Act.  In addition, licensees would be required to complete six continuing education credits annually.
• Permit the Department of Banking to deny a license if the applicant or certain individuals associated with the employer or applicant have been convicted of a crime of moral turpitude or a felony.
• Require that all advertisements by a mortgage originator include information that he or she is licensed by the Department and the name of his or her employer.
• Restrict funds that a mortgage originator may accept, including any fees from consumers, in the mortgage originator's own name.
• Permit the Department to examine all records of a licensee and to conduct administrative hearings on any matter pertaining to the Act; to render a decision concerning the suspension, revocation or nonrenewal of a license; to impose conditions on licenses; and to issue orders requiring restitution for actual damages or requiring an originator to cease and desist from prohibited activity.
• Establish that an individual engaging in the first loan mortgagee business without a license commits a third degree felony.
• Increase the penalty for violations of the Act from $2,000 to $10,000 for each offense.  Passed:  47-0.

Senate Bill 488 (Browne) would amend the Secondary Mortgage Loan Act of 1980 by requiring additional licensing requirements for individual mortgage originators of secondary mortgage business (home equity loans, for example).  Among other modifications, the bill would: 

• Require the licensing of persons who engage in the secondary mortgage business, defined as making or offering to make more than two secondary mortgages or becoming the holder of more than two or more promissory notes or mortgages in connection with a secondary mortgage in a calendar year.
• Stipulate that the Act does not apply to secondary mortgage loans made for business or commercial purposes.
• Exempt various categories of individuals, businesses and government agencies, including regulated banks and credit unions, attorneys who act as secondary mortgage brokers, and authorized state and federal agencies, from the provisions of the Act.
• Increase the fees for licensure and require an applicant for licensure to successfully complete a minimum of twelve hours of instruction and a testing program regarding the secondary mortgage loan business, the Loan Interest and Protection Law, and relevant federal law such as the Real Estate Settlement Procedures Act, the Truth in Lending Act, and the Equal Credit Opportunity Act.  In addition, licensees would be required to complete six continuing education credits annually.
• Permit the Department of Banking to deny a license if the applicant or certain individuals associated with the applicant or his employer have been convicted of a crime of moral turpitude or a felony, or if such persons have had a license application denied, not renewed, suspended or revoked; are subject to an order of the department; have violated any provision of the Act; do not possess the financial responsibility, character, or reputation to command the confidence of the public; or, have an outstanding debt to the Commonwealth.
• Require that all advertisements by a mortgage originator include information that he or she is licensed by the Department and the name of his or her employer.
• Accept any fees from consumers in the mortgage originator's own name.
• Permit the Department to examine all records of a licensee and to conduct administrative hearings on any matter pertaining to the Act; to render a decision concerning the suspension, revocation or nonrenewal of a license; to impose conditions on licenses; and to issue orders requiring restitution for actual damages or requiring an originator to cease and desist from prohibited activity.
• Establish that any person engaging in the secondary loan mortgagee business without a license commits a third degree felony.
• Increase the penalty for violations of the Act from $2,000 to $10,000 for each offense.  Passed:  47-0.

Senate Resolution 254 (Baker) designates March 2008 as "American Red Cross Month" in Pennsylvania.  Adopted by Voice Vote.

Senate Resolution 255 (Pippy) honors the 250^th anniversary of the naming of the Pittsburgh region.  Adopted by Voice Vote. 

Senate Resolution 256 (Costa) honors the life of Myron Cope.  Adopted by Voice Vote. 

House Bill 363 (Casorio) would designate the bridge carrying State Route 30 over Main Street in North Huntingdon Township, Westmoreland County as the Veterans Bridge.  Passed:  47-0. 

Wednesday, March 12, 2008 

Senate Bill 1199 (Baker) would amend Title 51 (Military Affairs) of Pennsylvania Consolidated Statutes to extend the military leave of absence required to be given by an educational institution to a member of the Pennsylvania National Guard or reserves when on active duty to the member's spouse.  Both members and their spouses would be entitled to be restored to the educational status attained prior to the military duty without loss of credits, scholarships, grants and tuition reimbursements.  Passed:  47-0. 

Senate Resolution 257 (Costa) recognizes March 15 through 20, 2008 as "Won't You Be My Neighbor Days" in Pennsylvania.  Adopted by Voice Vote. 

Senate Resolution 258 (Regola) designates the week of March 16 through 22, 2008 as "Land Surveyors Week" in Pennsylvania.  Adopted by Voice Vote. 

Senate Resolution 259 (Piccola) designates the month of March 2008 as "Multiple Sclerosis Awareness Month" in Pennsylvania.  Adopted by Voice Vote. 

Senate Resolution 260 (Piccola) designates the month of March 2008 as "International DeMolay Month" in Pennsylvania.  Adopted by Voice Vote. 

Senate Resolution 261 (Orie) recognizes March 2008 as "Women's History Month" in Pennsylvania.  Adopted by Voice Vote.